Retirement and Paid Up Pension Plan

B

Bedlam

Registered User
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Can a paid up personal pension plan be transferred into an employer scheme before retirement to boost the fund or does it have to be dealt with under the paid up plan to claim the benefits?

Thanks
 
I don't think that personal pensions can be transferred into occupational schemes at all. Even if it was why bother since consolidating multiple pensions is not always a good idea and in any case you will get the benefits from each pension anyway?
 
You certainly cannot amalgamate Personal Pensions and Occupational Pensions. And there is prrobably no advantage is you could. Remember:
  • In the Personal pension you can take 25% of the fund tax free
  • The balance can be used to buy an annuity or invested into an Approved Retirement Fund (ARF)
In the case of the Occupational Pension:
  • The tax free lump sum formula may well give a lower figure than 25% of the Fund (unless you are a 5% + Shareholder)
  • You will not have the ARF option (unless you are a 5% + shareholder)
You will have to deal with both arrangements separately.
 
I'm not suggesting that Bedlam should do this but, could he not transfer his Personal Pension fund to a PRSA and then transfer PRSA fund to the employer scheme?
 
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